SpiceJet to infuse Rs 300 crore; appoints new directors

  • PTI, New Delhi
  • Updated: May 21, 2015 16:31 IST

Budget carrier SpiceJet Thursday said it will infuse Rs. 300 crore into the airline through various instruments and enhance its fleet size to 45-50 aircraft by March next year.

The decision to raise an additional Rs. 300 crore was taken by the airline's board that met in Chennai Thursday, the company said.

The airline's board of directors has also appointed new majority shareholders -- Ajay Singh and his wife Shiwani Singh as directors, and Harsha Vardhana Singh as the independent director.

Singh will be the chairman and managing director of the company, it said, but will not draw any remuneration for the executive functions to be performed by him.

"The Board also took on record mobilisation of additional funding of Rs. 300 crore through various sources," SpiceJet said in statement.

Singh, a co-founder of SpiceJet who exited the airline in 2010, took back its control after acquiring the entire 58.46% stake of Kalanithi Maran and Kal Airways Pvt. Ltd in February as part of a revival plan.

As part of the plan, approved by the Civil Aviation Ministry, Singh has committed an investment of Rs. 1,500 crore in the carrier, of which he has already infused Rs. 500 crore in February immediately after taking over its ownership.

"The board also took on record company's efforts to increase its fleet size to 45-50 aircraft by March 2016," the statement said.

The airline currently has 35 planes - 20 Boeing 737s and 15 Bombardier Q400 - in its fleet.

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